JCT 21.2.1 and 6.5.1 Non-Negligent Liability Insurance
What is JCT 21.2.1/6.5.1?
JCT 21.2.1/6.5.1 non-negligence liability insurance is typically taken out jointly between the employer and the contractor, where building work is being carried out. It provides comprehensive cover against financial and legal costs due to loss or damage to some adjacent or surrounding properties to that which is being worked on. It specifically covers risk not included on public liability insurance that you may hold as a contractor. In many cases it will be a contractual obligation, so this type of cover is essential.
Who might need JCT Insurance?
Under the terms of a JCT contract, the contactor may be required to affect a policy to cover for the client’s property on which he is working. It’s an important insurance to have, as this kind of work can easily give rise to damage to neighbouring properties including subsidence, heave, vibration, removal or weakening of support or the lowering of ground water.
So, it’s about not being at fault?
Correct. If a case is brought against you as a contractor due to your own negligence, your public liability insurance will cover the costs. However, JCT Clause 21.2.1/6.5.1 Insurance is bought in addition to Liability and Contract Works cover; It is there to protect you and the property owner if something happens that results in financial loss to a third party, but where negligence by you as the contractor cannot be proven.
Who is protected?
Usually a JCT Clause 21.2.1/6.5.1 contract will require the policy to be in joint names, between the contractor doing the work and the client – the property owner, for example. As the contractor, you will be responsible for arranging the JCT Insurance policy, paying the premium and complying with the policy conditions.
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What is covered under JCT 21.2.1/6.5.1 Insurance?
Where non-negligence is proven, JCT 21.2.1/6.5.1 usually protects you as the property owner against loss or damage sustained to nearby property whilst carrying out a contract.
Typically it would cover:
- Lowering of ground water
- Weakening or Removal of Support
Won’t my clients buildings insurance cover it?
No. Standard home insurance doesn’t cover any work which is carried out to your property by a contractor. It’s really just a cover for things like fire, theft or other unexpected events which come out of the blue. It won’t cover any damage to neighbouring property either, and if they decided to sue you the costs could run into thousands. It’s really not a risk worth taking.
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Why choose Real Insurance Brokers for my insurance?
At Real Insurance Brokers we have many years of experience within the insurance industry and are pleased to offer a bespoke, professional service. When you get in touch with us, our expert team will work with you to understand your exact insurance requirements, then search our range of leading UK insurers to find you the exact cover to suit.
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